Fundraising

Fundraising

reg partridge said:
Just read in local rag that Posh have received £200,000 from Norwich & Peterboro BS from a fans saving scheme where the club get 1% of all money saved in the scheme by fans. Not too sure how it all works but sounds a good and simple way to raise a bit of dosh.
Or have we already got something like this already going?
They have received over £1,000,000 in the 8 years of the account being started.
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As I know someone very high up in N&P, I will ask him if this figure is accurate. It would require £20,000,000 of funds to be in the appropriate savings scheme and it is no formality to raise that kind of sum from savers who are happy to receive significantly lower interest than they could.
 

Fundraising

Fundraising

Here's the rates. Not the best in the world but you could do a lot worse TBH. I'd be happy to forego a bit of interest to benefit the Club. It's been suggested on here before but Peterborough have done superbly to benefit to that extent and I should think the N & P have done well too.

The also have accounts for Lincoln and Norwich.

Account balance Gross* Net** AER***
Current rates effective from 06/06/07. The interest rates that will be paid on this account may go up and down from time to time.
£100,000 or over 4.55% 3.64% 4.55%
£50,000 to £99,999 4.05% 3.24% 4.05%
£25,000 to £49,999 3.65% 2.92% 3.65%
£5,000 to £24,999 3.30% 2.64% 3.30%
£2,500 to £4,999 3.05% 2.44% 3.05%
Up to £2,499 2.80% 2.24% 2.80%
 

Fundraising

Well there you go - there are enough Peterborough-supporting mugs to invest £20,000,000 between them. How do you reckon that breaks down? 1,000 supporters with an average of £20,000 each in accounts paying crap rates of interest ... or maybe 10,000 with an average of £2,000 each? It's probably somewhere in between and my guess is that it includes a few people with more money than sense who have been sold the account against their best interests by over-keen branch staff. Can't see them obliging Brentford in the same way and there isn't a Brentford & Isleworth Building Society. There may be some mileage in a scheme like this, but it would need some selling and I can't see it raising that level of money, although I'd be delighted to be wrong. But then, what would be done with the money? Would it be used to repay the millionaires - people who have enough sense not to invest in such poor-paying accounts? Or ring-fenced into a playing fund?
 

Fundraising

Edmundo said:
Well there you go - there are enough Peterborough-supporting mugs to invest £20,000,000 between them. How do you reckon that breaks down? 1,000 supporters with an average of £20,000 each in accounts paying crap rates of interest ... or maybe 10,000 with an average of £2,000 each? It's probably somewhere in between and my guess is that it includes a few people with more money than sense who have been sold the account against their best interests by over-keen branch staff. Can't see them obliging Brentford in the same way and there isn't a Brentford & Isleworth Building Society. There may be some mileage in a scheme like this, but it would need some selling and I can't see it raising that level of money, although I'd be delighted to be wrong. But then, what would be done with the money? Would it be used to repay the millionaires - people who have enough sense not to invest in such poor-paying accounts? Or ring-fenced into a playing fund?
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Ed, you are the sort of person that will be aware of the best offers available in terms of rates - don't take that the wrong way. But believe me when I tell you that the average interest rate earned on personal deposits with banks and building societies is a long way below the figure offered above.
 

Fundraising

The rate on a £20,000 deposit there is 3.30%. When you can get 5.00% or more for this amount, that's a big difference - about a third less, in fact. Maybe there are enough people around who will settle for this - you're in the business, Jim, do you reckon you could sell £500,000's worth? That would bring in £5k. How long would it take? Yes I'm sceptical, but I'd love to be proved wrong. I can get the N&P to get in touch with BFC - as I said, I am very good friends with someone very senior at N&P. I suspect that problem is that BFC can't afford the salesperson needed to make it work.
 

Fundraising

As has been said, this kind of thing obviously works well in the sticks, promoting brand loyalty amongst the yokels, but I doubt there's any mileage here for us. It must be 20/25 years since the Ealing & Acton was swallowed up, for example. I don't know, but I imagine N & P must have some privileges/club sponsor status - free boxes; tickets; adverts etc - for this kind of money.... Nice idea, but we're too close to London & Big Finance -though not close enough!
 

Fundraising

I forwarded details to KD back in October regarding BS affinity schemes, as suggested above, and I received an immediate reply saying along the lines of "thanks it's a good idea but after speaking to Bristol City the return wasn't very good and not best use of my time", then I mentioned the Posh had generated c£800k in seven years he said he was interested, so I provided the links (see below) and heard nothing since.
I personally think that this sort of scheme should be a club fundraiser (not BU) and could be targetted (money raised goes to youth development or playing budget for example). There are two Building Society's, as far as I am aware ,that provide these accounts - the N&P and Brittannia.
This sort of scheme will make a bit of change, from supporters spending money to raise money for the club, to actually raising money through a savings account.

http://www.npbs.co.uk/savings/football.asp
http://www.britannia.co.uk/c_partnerships/fball_clubs/index.html

As you can see from the links above, that a fair few clubs have already signed up to the schemes. The accounts are online as well which would help as there is no N&P branch locally to Brentford, the Brittannia BS has branches in Ealing, Hounslow & Kingston so could be the best option.
 

Fundraising

So is it part of the fundraising strategy?
 

Fundraising

This scheme won't sell itself, so the money that can be made needs to be looked at in the context of the cost of selling it, which I don't imagine to be trivial.
 

Fundraising

Edmundo said:
This scheme won't sell itself, so the money that can be made needs to be looked at in the context of the cost of selling it, which I don't imagine to be trivial.
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Why would it cost a lot to sell then Ed?
I would have thought that the BS's will provide sales literature and promotional packs and I doubt it will cost much to put links on the O/S and at the bottom of news articles.
Granted it may take up space in the matchday programme, but would that space have been sold anyway?
I also believe that both BS Accounts can be opened online, so emails to the mailing list could also be done, again I doubt that this costs much either!
 

Fundraising

jay1310 said:
Why would it cost a lot to sell then Ed?
I would have thought that the BS's will provide sales literature and promotional packs and I doubt it will cost much to put links on the O/S and at the bottom of news articles.
Granted it may take up space in the matchday programme, but would that space have been sold anyway?
I also believe that both BS Accounts can be opened online, so emails to the mailing list could also be done, again I doubt that this costs much either!
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Believe me Jay, it won't sell itself. The actions you suggest may not cost much, but employing someone to do them certainly does. And you'd need to do it more than once and be persistent and who's going to do it?
 

Fundraising

Edmundo said:
Believe me Jay, it won't sell itself. The actions you suggest may not cost much, but employing someone to do them certainly does. And you'd need to do it more than once and be persistent and who's going to do it?
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Why wont it sell itself?
It appears to work at other clubs, especially Peterborough (£1m in 8 years is pretty impressive return)
I am not so sure the club would need to employ someone to sell this!

Although you could say, a good sales person would more than pay for the salary they earn anyway!
 

Fundraising

Edmundo said:
Because it's an inferior product with limited appeal to a very small audience.
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Yes the interest rates are lower than other products available but some supporters may not mind the lower rate, as the club will benefit directly.

I am not privy to the amount of account holders for the Posh, but going on the average attendance, which is lower than Brentford's I would assume the same small audiance making £200k a year is worth a shot myself!

I take it you wont be opening an account, if it was started then?
 
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